Veteran banker KV Kamath advised banks to adapt, learn and modify the policies and working model to keep functioning. For banks who fail to do so, they might have to close shops, Kamath said.
Speaking at the Global Fintech Festival in Mumbai on September 7, Kamath highlighted that banks have to work with the new-age fintech companies to remain and prosper in the business.
"Banks have no option but to collaborate and partner with fintech companies. Fintechs should look at global opportunities in the financial market. There are places in the world where there are immense opportunities available in the market," Kamath said.
Also read: Axis Bank's Amitabh Chaudhry pitches for closer collaboration between banks, fintechs for growth
Innovation and adapting, Kamath said, would keep banks floated in the coming years.
"If I would have been in a bank today where there is no change and innovation, it would have been a nerve wracking experience for me," Kamath said.
Banks have to continuously learn about the latest developments in the sector. The new thing today is digital and fintech companies can help banks, he added.
Earlier, Amitabh Chaudhry, CEO and MD, Axis Bank, said that a collaborative model between banks and fintech companies is a must for overall growth of the financial sector.
"Fintechs do not have the business reach like banks and banks do not have the tech facility like fintechs. Hence, collaboration is the model both institutions need to work on," Chaudhry said at the Global Fintech Festival in Mumbai on September 6.
Many banks in India in the last few years have developed partnerships and co-lending deals with fintech companies. For example, the State Bank of India (SBI), the country's largest bank, had in 2022 partnered with Paytm to launch RuPay credit card.
Federal Bank has partnerships with neo-banking platforms like Jupiter, etc. to offer digital banking services.
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